Term
| What are barriers to trade? |
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Definition
| tariffs, quotas, limits on investment |
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Term
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Definition
| countires do not want to be self suffiecient, for efficiency and for specialization |
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Term
| 5 economic concepts that underlie trade |
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Definition
scarcity and choice
opportunity cost
rationing and incentives
supply and demand
gain from voluntary trade |
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Term
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Definition
| countires wealth is determined by how much gold/treasures it holds |
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Term
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Definition
| if all nations can produce at lowest caot and most efficiently than all nations will have a greater quantity of goods at more efficient costs |
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Term
| comparative advantage theory |
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Definition
| a country should produce more of an item when it opportunity cost is lower than another countires |
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Term
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Definition
| countries that have large supply of labor should produce labor intensive goods |
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Term
| factor production (capital) |
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Definition
| countries that have large supply of capital should produce hugh tech often being a country with higheducated and skilled labor force |
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Term
| Developmental theories of trade |
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Definition
emphasis on structural conditions,
based upon level of development:
ZONES: first world core, second wold semi-periphery and third world periphery |
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Term
| Ways of Measuring levels of development |
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Definition
-level of well being
-terms( GNP/GDP/PPP)
-relationship between levels of development and textile apparel industry |
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Term
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Definition
newly developing
developing
developed countires |
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Term
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Definition
| india, china, jordan, indonesia, honduras. issue government has chosen apparel production as primary market. |
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Term
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Definition
| mexico, costa rica, turkey, romania, all used apparel production to grow national economy and focused primarily on production for export and increasingly production for domestic market |
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Term
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Definition
| US japan australia western europe, no longer major producers rather major consumers. most competitive in production of textiles and least competitive in the production of apparel |
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Term
| why is the apparel industry so attractive to developing countries? |
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Definition
this industry employs many people
requires low skills
low start up costs and low capital investment
earns valuable foreign exchange |
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Term
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Definition
| output per citizen of that country |
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Term
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Definition
| value of goods and services produced by all worker even in other countires |
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Term
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Definition
| purchasing power parity looks at adjusted prices over different currencies us $ is standard measure |
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Term
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Definition
Fiber Industry
Textile Mills products
end market manufacturer
retailers
consumers |
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Term
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Definition
1) agricultural production and textile manufacturers
2) textiles textile product findings and trim manufacturers
3) apparel manufacturer apparel contractors and sourcing companies and retail product developers |
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Term
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Definition
| shifting processes to another country |
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Term
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Definition
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Term
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Definition
| finding the most efficient vendor of materials , production, and finished goods. |
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Term
| 3 criteria sourcers considerations |
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Definition
time line or location
cost
services |
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Term
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Definition
staple t shirt and jeans, do not change very often these goods are most appropriate for "quick retail"
mass production /economies of scale larger your output less it costs |
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Term
| fashion impact on: the firm consumer and society |
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Definition
the firm: entry is facilitated, small scale production, profits
consumer: production costs higher, eventual product obsolescence, product performance is neglected
Impact on society unnecessary obsolescence and disposal of discarded products |
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Term
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Definition
| fads have shorter product life cycle where as classics have longer than fashion product life cycles |
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Term
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Definition
| lowest wage determined by law or contract that an employer can pay an employee |
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Term
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Definition
| a wage sufficiently high enough to provide a a minimally satisfied living conditions |
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Term
| income elasticity of demand |
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Definition
| % change in clothing expense / % change in income |
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Term
| price elasticity of demand |
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Definition
%change in clothing expense/ %change in price
n is more than 1 = big response
n is equal to 1 = proportional response
n is less than 1= little response |
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Term
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Definition
| cost of market goods current/ cost of market goods in base year |
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Term
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Definition
| level of consumption urgently desired or strived for |
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Term
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Definition
| the consumption and savings opportunity gained by an entity within a specific time frame |
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Term
| measure of wel being or consumption |
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Definition
| standard of living/ working conditions/ safety and security/ political atmosphere |
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Term
| clothing expenditures have gone down over time due to: |
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Definition
| lower inflation for apparel increases in income more consumption options such as recreation or traveling, decrease in clothing as status symbol such as "knockoffs" |
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Term
| Manufactured fibers history |
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Definition
| man made, cellulose 1889, rayon 1924 (replaced cotton), viscose acetate in 1951, (big 3 nylon, acrylic, and polyester) |
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Term
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Definition
| expensive to produce, damaged the environment, less strength when wet rayon is now produced in asia due to laws |
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Term
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Definition
| development of technology to replace labor and moving production form home to factory |
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Term
| technology development timeline |
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Definition
1733 floor looms> Kays flying shuttle
1793 whitney's cotton gin
1795 Cartwright power loom
1895 battery loom |
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Term
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Definition
before 1776 (US still ran by england) us was not allowed to have textile mills
1793 first textile mill in rhode island
1812 war with great britain (embargo, tariff, import substitution) |
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Term
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Definition
apparel started in 1820s (garments and accessories) sailors minors and plantation workers all demanded RTW clothing no standard sizing was in place at this time
MYANMAR sizing for men
after civil war came economic expansion and more demand for RTW |
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Term
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Definition
1846 lock stitch machine by howe
1870 cutting machines
1880-1910 jewish immigrants |
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Term
| Jobber contractor systems |
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Definition
a business organization with the jobber taking on the risk (marketing and management) and the contractor offers efficiency in consistent garments
this brings expansion and flexibility |
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Term
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Definition
| created to promote friendly relations with management and workers |
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Term
| economic development in 20th century |
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Definition
-rise of international economic interdependence
-us as world leader pre ww2 isolationist 1945-60 was major growth
-volatility of world trade GATT turn WTO
-rise of imports (big 3 south korea hong kong and taiwan) |
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Term
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Definition
-economic growth forced to globalize
-production: constant demand for clothes employs many people requires low skills and low investment
-communication
-transportation systems institutional arrangements
(MFA GATT WTO IMF) |
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Term
| NAICS north american industry classification system |
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Definition
| began as a result of nafta used to communicate across countries, identifies sector, subsector group, industry nation. this facilitates record keeping and reporting |
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Term
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Definition
| industry wide technology: transportation and logistics, communicating, tracking deliveries, quick response partnerships, radio frequency identification |
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Term
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Definition
-industrial revolution 1700s
-innovation of fibers 1800s
-innovation of manufacturing
all have allowed for capital intensive in the us and to become competitive |
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Term
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Definition
mass communication
floor ready merchandise
CAD computer aided design
difficulties in substituting capital for labor |
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Term
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Definition
female workers: vulnerable to lose jobs due to shifting production women dont complain as much
Child labor: laws and violations under 15 yrs it is illegal to work, offer cheap labor and special techniques
sweatshop: below minimum wage labor, unregulated mandatory homework, no benefits |
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Term
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Definition
| consumption increases but paying less and is increasing for apparel higher than for textiles |
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Term
| Developing vs undeveloped |
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Definition
| undeveloped =cheap labor, illiteracy education, and infrastructure (such as roads, phones etc.) |
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Term
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Definition
| production +imports -exports |
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Term
| impact penetration value of imports/ total consumption |
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Definition
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Term
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Definition
| decrease in production in developed countries, increase in number of countries producing and trading, increased consumption of imports in developed countries "the world is flat" by thomas freedman |
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Term
| trade barriers and regulation 3 areas of globalization: |
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Definition
1400 -1914 globalization of countries post civil war was major time to produce goods
1915 - 2000 globalization of companies (IMF GATT MFA world bank)
2001 to present globalization of individuals |
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Term
| 2 philosophies of protected trade |
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Definition
trade protectionists= democrats
free traders= republican |
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Term
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Definition
reduces competition
makes competition more fair |
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Term
| impact of protection on firms |
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Definition
| higher price, growth and additional jobs |
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Term
| impact of protection on consumers |
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Definition
| higher prices less selection in market place |
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Term
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Definition
specific: standard fixed amount per unit revenue goes to government and offers little protection for trading up
ad valorem: fixed percent /value or product which does add protection for trading up |
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Term
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Definition
quota
exchange rates
import licensing
labeling domestic law content
price support programs
safety and health standards
subsidies for domestic firms |
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Term
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Definition
| one country regulates imports and other country does not consent |
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Term
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Definition
| 2 or more countries giving consent |
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Term
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Definition
| consent from both countries |
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Term
| General agreement on tariffs and trade |
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Definition
| was established to liberalize trade and to promote trade with out discrimination |
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Term
| Multifiber arrangement has caused imports to increase due to: |
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Definition
| bilateral agreements not being comprehensive in covering all products, and base level of imports was increased and the MFA was not well managed |
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Term
| ATC agreement on textiles and clothing |
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Definition
| purpose is to phase out MFA, not renewable, phase put quotas and reduce tariffs |
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